Crypto News
Bitcoin IRAs Compared: Spot ETF vs. No-key-control vs. Physical bitcoin
If you understand why bitcoin is an asset to hold for the long term, you may also wonder how to take advantage of retirement tax structures to minimize your tax expenditures. There are many different ways to approach holding bitcoin in an IRA, and as with everything in bitcoin, each has its trade-offs. Let’s look at how the many different bitcoin IRA approaches compare.
Sovereignty and appreciation
Before we can cover these approaches to bitcoin retirement savings, you have to understand the two most important benefits you receive by holding bitcoin: financial sovereignty and purchasing power. That is, the freedom you gain from holding the private keys to a digital bearer asset that exists outside the traditional financial system, and the appreciation of that asset as measured in fiat terms.
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The four most common approaches to holding your bitcoin in an IRA have different trade-offs related to these two benefits:
Product
Sovereignty
Price appreciation
Bitcoin futures ETF
No control of keys
Indirect exposure to price
Bitcoin spot ETF
No control of keys
Mostly direct exposure to price
Bitcoin IRA without key control
No control of keys
Direct exposure to price
Bitcoin IRA with key control
Full control of keys
Direct exposure to price
Beyond these two factors, the other differences are a bit more nuanced. Let’s take a closer look.
Four ways to hold bitcoin in an IRA
Bitcoin futures ETF in a brokerage IRA (BITO)
One previously-popular way to get exposure to bitcoin with minimal effort was with a futures ETF like ProShares Bitcoin Strategy ETF (BITO). This fund intends to offer investors managed exposure to bitcoin futures. Futures are financial contracts that require involved parties to perform a transaction at a given future date and price. You get no key control—a futures ETF like BITO doesn’t even hold physical bitcoin itself. BITO is still available, but its popularity has declined since the launch of bitcoin spot ETFs in 2024.
Bitcoin spot ETF in a brokerage IRA (IBIT, FBTC, GBTC, etc.)
Bitcoin spot ETFs launched in 2024, giving investors access to a bitcoin-proxy financial product with far more direct exposure to bitcoin’s price than the previous futures and trust products. Like bitcoin trusts and futures ETFs, you do not have key control over any physical bitcoin with these products. However, spot ETFs do themslevs hold physical bitcoin with custodians like Coinbase, Fidelity, and Gemini. They track the price of bitcoin closely because authorized participants have the right to create and redeem shares of the ETF, keeping price in line with its net asset value.
Bitcoin IRAs without key control (iTrust Capital, BitcoinIRA)
Many bitcoin IRA products allow you to buy real bitcoin but don’t offer any key control, like iTrust Capital, BitcoinIRA, Swan Bitcoin IRA, and others. Like the bitcoin proxy products, these products provide no control over your private keys. The largest benefit is that you get direct exposure to the price of bitcoin because physical bitcoin is held on your behalf. In these products, bitcoin is titled to you and in some cases it is possible to send it in-kind if you change IRA providers. You may also have more flexibility with trading options compared to a spot ETF.
Bitcoin IRAs with key control (Unchained IRA, Choice)
Key control is important for various reasons, but it’s all rooted in bitcoin principles more broadly. Bitcoin allows you as an individual to custody your wealth in a way that was never possible before. If you don’t hold your keys, you ultimately hold a bitcoin IOU, and the key holder can make arbitrary decisions like change associated fees, rehypothecate, and more. Another often-ignored component is that companies holding your keys can fail; you become an unsecured creditor if a company becomes insolvent.
There are bitcoin IRA products on the market that offer complete control of your bitcoin private keys and direct exposure to the underlying asset’s price movement. With these products, you eliminate single points of failure by controlling the keys to your physical bitcoin held in a multisig wallet. One of these products is the Unchained IRA.
Bitcoin IRA comparison: Spot ETF vs. no-key-control IRAs vs. key-control IRAs
Convenience
Holding bitcoin proxies like the spot ETF in your preexisting IRA account will be the easiest way to get exposure to the bitcoin price. It’s as simple as typing in a ticker symbol and buying the product, as long as your brokerage offers it. If you’re new to bitcoin and want to experiment with exposing your portfolio, the spot ETFs also let you easily trade in and out of your position at will—albeit only during market hours in most cases. As many trade-offs as these products have, they win this category.
No-key-control bitcoin IRA products are the clear runner-up for convenience since you don’t have to consider key management practices while still getting direct exposure to the bitcoin price.
Price correlation
If you’re holding a bitcoin proxy like a spot ETF in a brokerage account, you aren’t holding real bitcoin, but you are still holding a well-engineered financial tool that correlates well with the bitcoin price with minimal slippage. Still, the spot ETFs aren’t perfect—nothing will do better than holding bitcoin itself when it comes to price correlation.
Whether you hold the keys to your bitcoin or not, products that allow you to hold physical bitcoin will track the price of the underlying asset, which is preferable for most investors.
Counterparty risk
Products like the spot and futures ETFs, as well as the no-key-control IRAs, don’t offer you the benefit of key control, which means you’re exposing your wealth to many layers of counterparty risk. For the spot ETFs, for example, you’re trusting the custodian (likely Coinbase, Fidelity, or Gemini), the ETF issuer itself, and the broker where you have a retirement account.
Another side effect of these proxy products and no-key-control IRAs is that you may eventually have to sell and take a distribution in U.S. dollars. With bitcoin IRAs with key control, you can withdraw real bitcoin from your account without penalty at retirement age. As the world shifts to a bitcoin standard, you may not need or want to sell it back to fiat when the time comes.
The adage of old remains true: “not your keys, not your bitcoin.” The bitcoin protocol was built to give you the opportunity to take control of your wealth. Controlling your keys minimizes counterparty risk and eliminates single points of failure.
Cost
The cost spectrum across all the bitcoin IRA products is broad, as is the value you receive.
The spot ETF products are relatively affordable—charging as little as 0.2%, which is far better than the hefty 1-2% that you’d pay for the convenience of GBTC or BITO before the spot ETFs were available. Still, the annual fees on spot ETFs can add up to tens of thousands of dollars, depending on your holdings and the appreciation of bitcoin.
Among the bitcoin IRAs that don’t offer key control, iTrust Capital is currently the most affordable approach to holding bitcoin in an IRA. On the other hand, competitors like BitcoinIRA are a bit more mysterious as to what their fees are—making it unclear how they compare on this front.
The Unchained IRA has a higher one-time setup fee, but lower annual fees and trading fees, leading to much lower fees over time.
Key takeaway
The only way you can hold bitcoin in an IRA while gaining the two benefits it was built for, limited supply and key control, is to hold bitcoin in a key-control bitcoin IRA.
While a key control IRA may require more from the client to learn to hold bitcoin keys correctly, we believe it’s time well spent to receive a basic bitcoin custody education. Multisig custody, in particular, eliminates single points of failure and trusted third parties.
Spot ETFs held in a brokerage account can also be a decent option if you want to immediately get exposure to bitcoin as you learn more about the technology and the importance of key control. But know that they can be costly in the long term, especially if the price of bitcoin rises dramatically over the coming years, and expose you to multiple layers of counterparty risk.
Onboarding, bitcoin IRAs, and beyond
If you already hold a bitcoin proxy product in an IRA at a traditional financial institution, we make it easy to roll over into physical bitcoin with key control through an Unchained IRA. And if you already have a physical bitcoin IRA, we can even take rollovers in-kind if your provider supports withdrawals.
We’re also your partner for Concierge Onboarding and beyond, so you can get help from bitcoin experts on your self-custody journey—no matter where it takes you. Anyone can learn to securely hold their bitcoin keys with the help of our Concierge team. Book a complimentary consultation for more details.
This article is provided for educational purposes only, and cannot be relied upon as tax or investment advice. Unchained makes no representations regarding the tax consequences or investment suitability of any structure described herein, and all such questions should be directed to a tax or financial advisor of your choice.
Originally published on Unchained.com.
Unchained Capital is the official US Collaborative Custody partner of Bitcoin Magazine and an integral sponsor of related content published through Bitcoin Magazine. For more information on services offered, custody products, and the relationship between Unchained and Bitcoin Magazine, please visit our website.
Different IRA strategies have different tax structures and expenses. Each strategy has different trade-offs to decide between.
Crypto News
David Bailey Forecasts $1M Bitcoin Price During Trump Presidency
In an in-depth discussion on the Hell Money Podcast, David Bailey, CEO of BTC Inc., shared insights into Bitcoin’s transformative potential, its geopolitical implications, and its role as a cornerstone of a new global economic framework.
“I see this happening so much faster than anyone can appreciate. Within 10 years, Bitcoin will become the reserve asset of the world.”
- 00:00 Intro
- 07:15 Bitcoin soft forks
- 11:00 Bitcoin vs. Crypto in US policy
- 19:20 How much political power does Bitcoin have?
- 23:50 Bitcoiners are politically homeless
- 26:20 Strategic Bitcoin Reserve
- 29:00 Bitcoin development and ossification
- 32:00 Separation of money and state
- 33:40 Raise your time preference
- 35:20 SBR as a way out of USD global reserve status
- 41:00 Will they eventually fight us?
- 43:00 Incentives as a political movement
- 46:30 What happens next?
- 49:15 Bitcoin Vegas & Inscribing Vegas 2025
The Political and Economic Power of Bitcoin
Bitcoin has evolved into a significant political and financial instrument. Its decentralized nature, immutable ledger, and finite supply make it an attractive alternative to traditional fiat currencies, particularly during periods of economic uncertainty. Bailey emphasizes that Bitcoin is no longer merely a speculative asset but has become a political force capable of influencing policy and elections.
“Within the next four years, Bitcoin will be the most widely held asset in the world. This isn’t a special one-off moment—it’s the changing of the guard of the world order.”
As Bitcoin gains adoption among individual investors, corporations, and governments, its ability to sway decisions in both the public and private sectors continues to grow. This makes Bitcoin a strategic tool for economic stability and a hedge against systemic risks such as inflation, currency devaluation, and geopolitical instability. Understanding this evolution is crucial for investors looking to align their strategies with Bitcoin’s increasing influence in global finance.
Strategic Bitcoin Reserve: A Game-Changer for Economies
Bailey highlights the concept of a Strategic Bitcoin Reserve (SBR) as a key driver in Bitcoin’s path to becoming a global reserve asset. If a major economy, such as the United States, were to adopt an SBR, it could trigger a domino effect, with other nations racing to establish their own reserves. This global competition could significantly accelerate Bitcoin’s transition from a speculative asset to a fundamental part of national and international financial strategies.
“If America gets an SBR, China gets an SBR. If America and China have an SBR, within 12 months every country on the planet will have an SBR. The game theory effects of us kicking this off, in my opinion, are like the biggest catalyst possible for hyperbitcoinization.”
An SBR offers governments the ability to hedge against inflation, protect their economies from devaluation, and diversify their reserves. Unlike gold, Bitcoin is easily transferable, highly divisible, and operates transparently on a decentralized network. For investors, national adoption of Bitcoin reserves signals long-term stability and growth potential, reinforcing the case for allocating a portion of portfolios to Bitcoin and related assets.
Related: From Laser Eyes to Upside-Down Pics: The New Bitcoin Campaign to Flip Gold
Orange-Pilling Trump: A Strategic Advocacy Moment
One of the most intriguing aspects of David Bailey’s efforts in advancing Bitcoin’s adoption was his strategic engagement with former President Donald Trump. Bailey discussed how Bitcoin advocates pitched Bitcoin to Trump as more than just a digital currency, emphasizing its economic and political advantages. By framing Bitcoin as a tool for strengthening American competitiveness and financial independence, Bailey and his team successfully captured Trump’s interest.
“We are within a couple of years of being the most powerful political faction in the United States. And not just the United States—there are bitcoiners embedded in power structures across the planet.”
Bailey’s team leveraged Bitcoin mining as a key entry point in their discussions, highlighting the economic benefits of Bitcoin mining operations in the United States, such as job creation and energy innovation. This approach aligned Bitcoin with Trump’s “America First” policies, presenting it as a way to bolster the nation’s energy independence and economic strength. These discussions laid the groundwork for a broader understanding of Bitcoin’s strategic value at the highest levels of government.
Governance and Innovation in Bitcoin
While Bitcoin’s decentralized nature is its greatest strength, it also presents challenges in governance and technological adaptability. Bailey underscores the importance of continuous innovation, particularly through mechanisms like soft forks, to ensure that Bitcoin remains scalable, secure, and competitive. Without these updates, the risk of ossification—where the network becomes resistant to necessary changes—could hinder Bitcoin’s evolution.
“Bitcoin gives governments a really elegant way out of the money-printing trap. They can print money, buy Bitcoin, and as the price of Bitcoin goes up, they’re still solvent. Later, they can peg their currency to Bitcoin.”
The Bitcoin community must navigate these governance complexities with a focus on collaboration and forward-looking solutions.
Hyperbitcoinization and the $1 Million Price Target
Bailey predicts that Bitcoin could reach a value of $1 million per coin within the next four years, driven by its growing adoption and the systemic challenges faced by traditional financial systems. This projection signifies more than just a price milestone—it represents a fundamental shift in the global economic order. Hyperbitcoinization, as Bailey describes it, involves Bitcoin becoming the default reserve currency, complementing or even replacing traditional fiat currencies.
“When we get to a million bucks, which I think can happen over the next four years—in my personal opinion, I think it’s possible—the Federal Reserve is, like, going to be completely impotent.”
This transition would have profound implications. Bitcoin’s decentralized nature would democratize access to financial systems, reduce reliance on central authorities, and promote greater economic inclusion. For investors, the journey toward hyperbitcoinization offers unparalleled opportunities as Bitcoin’s dual role as a store of value and medium of exchange becomes increasingly evident.
Related: Eric Trump Confident Bitcoin Price Will Hit $1 Million
Interview Key Takeaways
- Political Leverage: Bitcoin’s influence on policymaking and elections underscores its role as a hedge against political and economic risks.
- National Adoption Trends: The adoption of SBRs by major economies could catalyze global Bitcoin adoption, creating a favorable environment for long-term investment.
- Technological Resilience: Continuous innovation, including scalability solutions like the Lightning Network, is essential for sustaining Bitcoin’s growth and usability.
- Portfolio Diversification: Bitcoin’s uncorrelated performance relative to traditional assets makes it an attractive addition to diversified investment strategies.
- Economic Stability: In an era of rising inflation and monetary instability, Bitcoin provides a transparent, secure, and decentralized alternative to fiat currencies.
The Future of Bitcoin in the Global Economy
David Bailey’s insights provide a compelling vision of Bitcoin’s transformative potential, offering investors a clear opportunity to align their strategies with a rapidly evolving financial landscape. By understanding and leveraging Bitcoin’s role in fostering economic resilience and innovation, investors can position themselves to benefit from its adoption as a global reserve asset and a tool for long-term portfolio growth. As the world confronts challenges such as inflation, currency instability, and geopolitical uncertainty, Bitcoin emerges as a beacon of financial stability and innovation. For investors, the implications of Bitcoin’s growth extend far beyond speculative returns—it represents a strategic opportunity to participate in the evolution of the global financial system.
“It’s like, well, once that happens, then it’s not $1 million or $10 million. It’s like, it is the reserve asset of the world.”
In the coming decade, Bitcoin’s role as a stabilizing force and driver of innovation will become increasingly evident. Its seamless integration into national and corporate strategies, combined with its adaptability, positions Bitcoin as a cornerstone of future financial systems. Bailey’s vision challenges investors to consider the profound implications of a decentralized monetary system that prioritizes transparency, inclusion, and resilience.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before making any investment decisions.
David Bailey, CEO of BTC Inc., shares bold predictions for Bitcoin’s future, including its potential to reach $1 million during the Trump presidency. This article delves into the political, economic, and technological forces shaping Bitcoin’s role as a global reserve asset and highlights key strategies for investors to align with its transformative potential.
Crypto News
Trump Did Not Free Ross On Day One Because Of Course He Didn’t
I’m not here to say “I told you so.”
In my Take from October 4, I did write that Donald Trump does not give a damn about Bitcoin, and in my Take from November 5 I wrote he just wants in on the crypto scam. But I didn’t mention Ross Ulbricht in either of these, largely because even I expected Trump to at least follow through on his promise to free Ross. It’s an easy promise to keep, without any real downside for Trump; after more than ten years in prison Ulbricht deserves to be free.
I didn’t really expect Trump to free Ross on day one of his presidency, however. Inauguration day is quite a busy day for a new president, I’m sure.
Having said that, it is what Trump himself said he would do. Of course Trump also said that he would have resolved the war in Ukraine by now — apparently they’re still fighting.
Trump is a bullshitter. He will just say whatever he wants or whatever people want to hear, with no regard for the truth. He may in fact well have the most recorded lies out of any human being in history: Fact checkers from The Washington Post have for example counted over 30,000 false or misleading claims during his first term as president alone.
Still, it is also true that Trump had a busy day yesterday. He signed 26 executive orders (a record amount for a first day president), and pardoned over 1500 of his supporters; those who stormed the US Capitol Building on January 6th four years ago. Yes, that means the QAnon Shaman walks free before Ross Ulbricht (H/T Trey Walsh)… but let’s just hope that Elon Musk is proven right in the next few days, and Ross will be freed too.
This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
Donald Trump broke his campaign promise to free Ross Ulbricht on day one of his presidency… let’s hope he follows through in the next couple of days after all.
Crypto News
Advanced Mathematical Projections for the Bitcoin Bull Cycle Peak
The current Bitcoin bull market presents a compelling opportunity for investors seeking precise, data-driven forecasts regarding the timing and magnitude of the next price peak. In a rigorous analysis presented by Bitcoin Magazine Pro, lead analyst Matt Crosby applies a sophisticated blend of historical data, moving average analysis, and statistical modeling to predict the forthcoming Bitcoin bull cycle peak.
Crosby’s findings project October 19, 2025, as a pivotal date, with Bitcoin reaching a median price of $200,000 and the potential for peaks extending to $230,000 when accounting for statistical outliers.
Access the Comprehensive Analysis
For an in-depth understanding of the mathematical methodologies and the complete analysis, refer to the full video presentation available on Bitcoin Magazine Pro’s platform.
The Pi Cycle Top Indicator: An Analytical Benchmark
Central to Crosby’s predictive framework is the Pi Cycle Top Indicator, renowned for its precision in identifying Bitcoin’s cyclical price peaks within narrow temporal margins during past bull markets. The indicator functions by employing two critical moving averages:
- 111-Day Moving Average (111DMA): Reflecting shorter-term price dynamics.
- 350-Day Moving Average (350DMA) multiplied by two: Offering a broader historical perspective.
The nomenclature “Pi” arises from the ratio of these averages, approximating 3.142. Historically, the intersection of these moving averages has corresponded with Bitcoin’s market cycle peaks:
- 2017: The indicator predicted the peak with a one-day margin of error.
- 2021: Accurately identified the exact peak date.
Methodological Precision: From Data to Predictions
Crosby extends his analysis through Monte Carlo simulations, a robust statistical technique that models numerous potential trajectories for Bitcoin’s price evolution. Key facets of this approach include:
- Quantifying median daily returns and associated volatility over the preceding 791 days.
- Running more than 1,000 simulations to map a spectrum of plausible price paths.
- Deriving a median price peak of $200,000, with an average of $230,000 when incorporating extreme data points.
These simulations align with historical patterns, suggesting that the next Bitcoin bull cycle peak will likely occur on October 19, 2025.
Examining Diminishing Returns
To estimate the price range at the projected peak, Crosby evaluates the historical phenomenon of diminishing returns, where each successive cycle exhibits proportionally smaller price increases relative to its moving averages:
- 2013: Bitcoin’s price exceeded its moving averages by 440%.
- 2017: This figure decreased to 299%.
- 2021: The peak was 32% above the moving averages.
Extrapolating this trend and incorporating Monte Carlo simulations yields the following projections:
- Median Price Peak: $200,000.
- Average Price Peak: $230,000, accounting for statistical variability.
Implications for Investors
Crosby underscores the inherent uncertainties in any predictive model, emphasizing the importance of adapting to evolving market dynamics. Factors such as institutional adoption, macroeconomic trends, and unforeseen events could significantly influence Bitcoin’s trajectory. Nonetheless, this analysis provides a rigorous, data-driven framework to inform investment strategies during the current bull cycle.
Key Insights
- Projected Peak Date: October 19, 2025.
- Forecasted Price Range: A median of $200,000, with potential peaks averaging $230,000.
- Analytical Tools: Pi Cycle Top Indicator and Monte Carlo Simulations, powered by Bitcoin Magazine Pro data.
For ongoing access to live data, advanced analytics, and exclusive content, visit BitcoinMagazinePro.com.
Disclaimer
This article is intended for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct thorough independent research before making investment decisions.
Discover how advanced statistical methods and historical data, including the renowned Pi Cycle Top Indicator and Monte Carlo simulations, are used to project Bitcoin’s next bull cycle peak, with insights into potential price ranges and timing for savvy investors.
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